2q20 results meeting & 2h20 highlightsrs.listedcompany.com/misc/presentation/20200817-rs... ·...
TRANSCRIPT
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2Q20 Results Meeting& 2H20 Highlights
14 August 2020
Virtual Conference
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2Q20 Performance
Summary
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Quarterly Financial Results ▪ 2Q19 - 2Q20
95 92 66
186
109
11% 10%7%
19%
13%
2Q19 3Q19 4Q19 1Q20 2Q20
-7%YoY-15%QoQ
542 443 465 500 586
262 270 250
376 221 96 174 181
109 26
900 887 895 985833
44% 44% 41%
56%53%
2Q19 3Q19 4Q19 1Q20 2Q20
(THB mn, %)
Revenue and GPM
Net Profit and NPM
Commerce
Media
Music & Others
Commerce
Media
Music & Others
%GPM
(THB mn, %) +14%YoY-42%QoQ
%NPM
• Highest record commerce revenue from higher of every sales channels
• Lower cost of CH8 from reductions in content cost, license, USO and MUX fees
3
• A rise in net profit from higher GPM and well-managed expenses
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6M Financial Results ▪ 1H19 vs 1H20
205 295
11%16%
1H19 1H20
1,105 1,086
549 597
175 135
1,829 1,818
45%54%
1H19 1H20
-1%YoY(THB mn, %)
Revenue and GPM
Net Profit and NPM
Commerce
Media
Music & Others
Commerce
Media
Music & Others
%GPM
(THB mn, %) +44%YoY
%NPM
• Additional media revenue from content licensing without additional cost
• Lower cost of CH8, radio and music in proportion to a decrease in each revenue
4
• A rise in net profit from higher GPM and lower finance cost from disappearance of deferred interest
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Commerce Performance
236 191 190 231 261
242 217 239
239 270
65
35 36
29
55 542
443 465 500
586 68% 66% 64% 65% 68%
2Q19 3Q19 4Q19 1Q20 2Q20
%GPM
(Revenue, THB mn)
YoY : +8%QoQ : +17%
Inbound
Outbound
Online & Others
Key Highlights
• Improved inbound & outbound sales momentum by 13%QoQ from growing customer to 1.4m people, coupled with sales channel expansion in Q1-Q2
• Predictive Dialing System (PDS) adopted more precisely to fully enhance efficiency of the call center system in maximizing customer contact
• “RS Mall Mid Year Super Sale”, another grand sales promotion continued to boost up the sales efficiency despite the market downturn
• High GPM at 68% showing the company’s ability to manage its overall product combination that most profitable and offering products that specifically address health care amid Covid-19 situation
Leverage on expanding customer base & sales channels
Effective marketing campaign and promotion
High gross margin maintained
5
1.4M customers
A fully implemented software tool
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TV Performance
188 204 170
336
198
193 209 174
336
199
-33% -26%-53%
36%
4%
2Q19 3Q19 4Q19 1Q20 2Q20
Satellite TV
%GPM
(Revenue, THB mn)Key Highlights
• 2Q20 TV ADEX contracted as a result of Covid-19 pandemic and weak private consumption. However, people have had to spend more time at home, resulted in an unchanged of the number of TV viewers
• Adaptability of Channel 8’s sales and content production approaches, including content management in international markets and on other online platforms resulted in similar quarterly income of Channel 8 during 2019
• Content production cost plunged over 25% compared to quarterly cost in 2019 from content cost management and lower operating cost benefited from license fee waiver, a reduced rate of annual contribution to USO fund and a ceasing of MUX fee since June
A huge drop in TV ADEX
Unmatched CH8’s performance
Effective cost controls & benefits
YoY : +3%QoQ : -41%
6
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Radio Performance
47 42 55
33 23
23 19
21
6
70 61
76
39
23
70%78%
72%81%
57%
2Q19 3Q19 4Q19 1Q20 2Q20
(Revenue, THB mn)
%GPM
Key Highlights
• “COOLfahrenheit”, No.1 radio station for Easy Listening category, showing a decrease in revenue in accordance with overall industryand no activities for listeners during Covid-19. However, both popular “COOL Outing” and “Ink Eat All Around” activities have resumed in Jul
• “COOLanything” new feature under the concept of “Enjoy music and shopping in one app”, developed to support the commerce business
Radio media industry shrank and no activities-linked
YoY : -68%QoQ : -42%
7
Media
Event
Turn online music fans into customers
Start in Q3
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Music & Others Performance
55 86 83 74
24
41
88 98
35
2
96
174 181
109
26
55%64% 62% 64% 66%
2Q19 3Q19 4Q19 1Q20 2Q20
(Revenue, THB mn)Key Highlights
• Main revenues from YouTube, music downloading and to license music catalogue to bolster income streams
• A ceasing of events and concerts during Covid-19 measures causing a decline in other revenue
Online-generated revenue
Preventive measures implemented for Covid-19
YoY : -73%QoQ : -76%
%GPM
8
Music
Event & Concert
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2H20 Highlights
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Entertainmerce Strategy
10
RS GROUP
8M
Age 40+
Urban & Rural 70%
5M
(1.4M Customers)
Age 35-55
Urban 70%
32M subscribers &
9M followers
Age 18-50
Nationwide
4M
Age 25-44
BKK 65%
REACH
Commerce Media | TV Media | Radio Music
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11
Content marketing through “Storytelling” Campaign & Promotion
Commerce Business Highlights
2x Inbound sales uplift
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12
Product Lineup Technology Adopted
Partner
Customer Frequency
1.4 >> 1.6 M
+14%
1.9 >> 2.5 x/Year
+32%
S.O.M. DTX Probiotics
S.O.M. MultiplusCollagen
S.O.M. Choles
S.O.M. OVOMOV
S.O.M. Probio-10
REJU Real Bird Nest Drink
Meal Replacement
>20 SO per month
Commerce Business Highlights
Fashion FMCG Home & Living
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TV Business Highlights
13
New Programs TV Entertainmerce Programs
Expected THB 50m from licensing
to be booked in 2H20
Expected THB 1m in revenue per slot
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Radio Business Highlights
14
Lifestyle Online Shopping
No. of active listener : 150K per day
Product : Lifestyle & Gadget
Target customer : Age 25-44, BKK 65%
Storytelling : By COOLJ
To boost online sales by 80%YoY
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Music Business Highlights
15
To turn >30M music fans into customers, starts in Oct
OPTION 3
Presentation for Lifestar Only
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RS Investor Relations+662 037 8125-6
http://www.rs.co.th/[email protected]
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